Aussie bourse flat despite decent sell off in US Futures
WHAT MATTERED TODAY
A reasonable day for Aussie stocks given US Futures came under a raft of selling early on the back of reports that Trump is stepping up his tariff talk targeting another $100bn of Chinese product – although it does feel like traders are acclimatising to the posturing given we didn’t see the usual Friday weakness on the mkt today + the Australian markets was incredibly resilient climbing back up from early weakness. Asian markets were also strong with Hong Kong up +1.23% even though US Futures were down ~1% for much of our session – right now DOW FUTURES are off -254pts.
Overall, the ASX 200 ended flat for the day closing just shy of the 5800 level at 5788.
ASX 200 Chart
ASX 200 Chart
For the week , the market was flat in aggregate with the bid for Santos putting a bid tone under the Energy Sector. Interestingly, Financials actually finished the week in the black.
While on a stock specific level….Some of the higher PE names were in the sights of sellers…
CATCHING OUR EYE
Some Big Lines; There’s a seller of some big lines of stock in the market today and some (unsubstantiated) rumours that it’s Fidelity looking to fund a raft of redemptions, no doubt a consequence of a few poor picks in recent times (assuming there is substance to the rumours) BlueSky obviously the latest of their woes – they hold around 7m shares after spending another $33m in the recent $100m share placement at $11.50 per share (stocks now trading around $5.70).
This is not new ground for Fidelity though after they bought 13.6 million GetSwift shares at $4 in December - now trading at just 46¢) and they also held 23.5 million Quintis shares – which are now worthless. Quintis were the previous target of Short Seller Glaucus before ultimately administrators were appointed early this year.
Fidelity are massive, the numbers here might sound large but they have a significant invested in Australia from what I can see and the issues they’ve had in recent times will have a bigger bearing from a reputational perspective, rather than a big hit to performance, however it’s still a negative. Anyway, it makes sense to understand what they are holding – and the list is long. We’ve pulled their holdings from IRESS and we’ve included a small list here of the stocks over 5% and of reasonable size.
Some of their larger holdings (over 5% and of reasonable size)
Source; IRESS
OUR CALLS
We added the USD ETF to the MM Growth Portfolio Today
Have a great night
James & the Market Matters Team
Disclosure
Market Matters may hold stocks mentioned in this report. Subscribers can view a full list of holdings on the website by clicking here. Positions are updated each Friday, or after the session when positions are traded.
Disclaimer
All figures contained from sources believed to be accurate. Market Matters does not make any representation of warranty as to the accuracy of the figures and disclaims any liability resulting from any inaccuracy. Prices as at 06/04/2018. 5.04PM
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